What would you say to a program that helps you pay off your Hoboken mortgage in half the time? Sounds great doesn't it?
Here's how it works:
It's called the Home Ownership Accelerator (HOA). It has only been available in the United States for a short time, but it has been successful in both Great Britain and Australia for several years.
The HOA is a type of loan that works by using the money you have sitting idle in your checking or low interest savings account to pay off your mortgage faster. The great news is that you don't need to change your spending habits.
It works by taking your paycheck that you deposit into the checking account that comes with the loan and applying the money to reduce your mortgage balance.
The benefit of this is that the mortgage interest that you owe goes down immediately. Mortgage interest is calculated on a daily basis and is based on your interest rate as well as the current size of your mortgage.
When you need money, to pay your bills for example, you write a check from the checking account. The mortgage balance then goes up to cover the amount of the check.
This type of loan works best for homeowners who make more than they spend in one month. Over time, this difference has a substantial impact on the remaining term of your Hoboken mortgage.
Of course, you don't need this type of loan in order to pay off your mortgage early. You can do it with your current mortgage by simply paying extra each month. But let's face it, not all of us have the discipline to do that. An HOA makes it easy by doing it for you.
Who can benefit from an HOA? The HOA is for those who are able to save money each month, have good credit, and have a solid income. It is great for those who are self-employed, investors, and high income earners. An HOA can also be used as a reverse mortgage.
In order to qualify, your credit score needs to be at east 720 and you need at least 25 percent equity in your home or be willing to put 25 percent down on the loan. In addition, loans can go up to $2.5 million, but it must be a loan on your principal residence.
About Eddie: Eddie Perez is a resident of Hoboken and works as a New Jersey licensed Broker – REALTOR. His goal is to educate both buyers and sellers so that they can make the most of their bottom line while saving time and having fun during the process of buying or selling condominiums and brownstones in Hoboken and the surrounding metro communities including Jersey City and Weehawken, New Jersey. He has personally sold over 135 homes and is among the top producing agents in Hudson County. You can email questions to Eddie or to schedule an appointment to meet with Eddie, call him direct at 201.344.2886.
Comments(0)